Allowed

Canara Bank v. M/s Jai Balajee Trading and Co.

DRT25 Jun 2026OA/451/2024

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an ex-parte application filed by Canara Bank to recover a loan of approximately Rs. 49.9 lakh along with interest from a trading firm and its guarantor who failed to appear. The court determined the debt and issued a recovery certificate.

What did the court decide?

Debt determined at Rs. 49,89,566.24 with interest; Recovery Certificate issued directing realization via sale of assets.

Canara Bank versus M/s Jai Balajee Trading and Co. — Banking and Recovery | DRT (2026)

OA 451 of 20241 Jl

DRT, PATN A

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 451 of 2024

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Canara Bank, Branch Office at Manganpur, District- Vaishali.

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. . . . . . . Applicant

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M/s Jai Balajee Trading & Co. through its proprietor Pankaj Kumar, Regd. Office address- Dak Bungalow Road, Hajipur, District- Vaishali, State- Bihar- 844101

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Pankaj Kumar, S/o Late Subh Narayan Singh, Address- Indra Niwas, Bagdulhan, Old D.A.V. School, Hajipur, District- Vaishali, State- Bihar844101, PAN No. AKDPK4004B

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Indra Devi, W/o Late Subh Narayan Singh, Address- Indra Niwas, Bagdulhan, Old D. A. V. School, Hajipur, District- Vaishali, State- Bihar844101, PAN No. CBOPD9649H

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Anurag Kumar, Advocate For the Defendants None

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Dated:25.06.2026

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 06.09.2024 against the defendants to recover its debts from defendants of Rs.49,89,566.24 as on 29.07.2024 along with pendente-lite and future interest at the contractual rate from 30.07.2024 with costs till realization.

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The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

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Defendant no.1 is a proprietorship firm engaged in the business of wholesale & retail trader of fertilizer seeds and pesticides, of which defendant

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AbOli'a Presidjng Ttlbass) ReeDvery Debts pAI'NA

OA 451 of2024jJl

DRT, PATNA

no.2 is the proprietor. Defendant no. 3 is the guarantor. Defendants approached the applicant bank for sanction of OCC facility of Rs.25 L4kh, vide loan application dated 03.06.2016, which was sanctioned by the applicant bank on 03.06.2016 under the CGTMSE Scheme on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and in favour of the applicant bank, details of which are given in OA

¶26

Defendants again approached the applicant bank for enhancement of OCC facility of Rs.25 Lakh to Rs.45 Lakh, vide loan application dated 14.01.2019, which was enhanced/sanctioned by the appliQant bank on 14.01.2019 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and in favour of the applicant bank, details of which are given in OA. At the request of the defendants, the said was reduced to Rs.40 Lakh on 16.12.2022. The applicant bank has also sanctioned GECL facility of Rs.9 Lakh on 11.06.2020 and further sanctioned GECL 1.0 loan facility of Rs.4.90 Lakh on 04.12.202 1.

¶27

After availing the sanctioned credit facilities, the defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 15.03.2024.

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Since, the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

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The total liability in the loan account is Rs.49,89,566.24 as on 29.07.2024 with pendente-lite and future interest contractual rate from 30.07.2024 till the realization.

OA 451 of 20241 Jl

DRT1 PATN A

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 07.10.2024, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. Thereafter notice was again issued to the defendant on 16.01.2025, which was served by way of affixation at the gate of the borrower house.

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Despite the registered summons/notices and also by way of affixation of notice, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 16.07.2025 .

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Akhilesh Kumar Choudhary, Senior Manager of the applicant bank. The details+ of documents are as follows:

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Sl.No	Descriptionof Documents PhotocoDies	1 Date of IExecution	Amount (in Lakh	Signature Executants	of	1Ex./ Ann No.
	o		n5i	Def.no.1&2
	Sanctiol		25.00	Bank accepted def.no.1&2	and by
	CCagreement	03.06.2016	25.00	Def.no.I&2
	Letter	03.06.2016		Def.no.1&2
	Letter of renewal & loan application	14.01.2019	45.00	Def.no.I&2
	SUDDl.Agreement		e
	Link letter & Pronote	14.01.2019	e
8	Guarantee agreement	14.01.2019	e
9	Lo) Letter ofrenewal	16. 12.2022	e
10	Sanctionletter	6	40.00	Bank accepted def.no.1&2	ma by
	Loan application	11.06.2020	9.00	Def.no.I&2
	Sanction letter	11.06.2020	9.00	Bank accepted defendants	and by
13	Agreement deed c of			Def.no.1&2		13

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el, Oji'„

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Debt, Recovery Tribuna) r ATb1 4

OA 451 of20241J

nRT. PATNA

	hypothecation& letter Take delive
14	Guarantee agreement	11.06.2020	9.00	Def.no.3
15	LoanaDDlication	25.11.2021	4.90	Def.no.I&2
16	Sanctionletter		4.90	Bank
17	c Agreement of deed hyDothecation		4.90	Def.no.1&2
18	Tae & Pronote		e
19	of Statement accounts

¶43

Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings. of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 laos. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 15.03.2024, whereas the present application has been filed on 06.09.2024. Even, it is counted for the purpose of Limitation, then it is established that the applicant *,av

OA 451 of2024jJI

DRT, PATN A

bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

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Shri Akhilesh Kumar Choudhary, Senior Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides. that the provisions contained in section 4 of the Banker’s Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker’s Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a cert@ed copy of any entry in a banker’s book shaH in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordiniary course of business is not only admissible but shall be taken as the correct statement of account, more so since the entries in the statement of account have not been challenged.

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On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendants have executed various loan documents, as stated in the applicatiorb and proved by aforesaid evidence.

oBi;gTh.

DRT, PATNA

OA 451 of2024jJl

Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O. A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 29.07.2024 has been proved to be Rs.49,89,566.24 only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.49,89,566.24 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 06.09.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt -amounting to Rs.49,89,566.24 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 06.09.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy \A A p,',itji„g OficT

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tJ+b L) 1: 1 : e C : :1:{ { T r il][I11H) I11UnELIIi

OA 451 of2024jJ1

DRT, PATNA

Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery OfDcer will issue demand notice to the CertifIcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /CertiDcate holder fails to comply with directions of the Recovery Officer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in the website of the Tribunal.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 05.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 25th day of June, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Reco_vqy ;{{Lbw$d„Bptna : 'bts RecoverY TribPo’" PATNA

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EQRMLNb! [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATN A

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2nd noor! (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parism <GPOA)I Ashiana Digha Road, Patna-800025'

RC NO. 198/2026

Case No: OA/451/2024

In the Matter of: (CH- 1) CANARA BANK BRANCH OFFICE AT MANGANPUR, VAISHALI ,BIHAR -0

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Applicant(s)

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To (CD_ 1) M/S JAI BALAJEE TRADING AND CO through its Proprietor Pankaj Kumar Regd. Office Address- Dak Bungalow Road, Hajipur, Vaishali ,BIHAR -84+ 101

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(CD- 2) PANKAJ KUMAR S/0- LATE SUBH NARAYAN SINGH, ADDRESSINDRA NIWAS, BAGDULHAN, OLD D. A.V. SCHOOL. HAJIPUR. DIST.- VAISHALI, STATEDefendant(s) BIHAR- PIN 844101. (PROPRIETOR/BORROWER)

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(CD- 3) INDRA DEVI W/0- LATE SUBH NARAYAN SINGH, ADDRESSINDRA NIWAS. BAGDULHAN, OLD D.A.V. SCHOOL, HAJIPUR, DISH- VAISHALI, STATE - BIHAR, PIN- 844101 (GUARANTOR)

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y CFrtincate for Rs 4989566.24 IApy gUy Nine Thousands Fiv9 Hundred Sixty&xJld_MElw£!By Four OnI)]

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In terms of final order dated 25/06/2026 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 4989566.24 along with cost, expenses and interest from the 06/09/2024 i.e. date of filing / with efFective date of the OA/451/2024 and future interest nom order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Int, ' EfFective Order
Sr.no CD Name
Type Type/Mode Rate - Date Date
M/S JA
)mpound
TRADING AND
CO .Monthly )
. PANKAJ CompoundInterest 10 4989566.24
z KUMAR (Monthly ) i06/09/2024 25/06/2026 :4989566.24 tEL"::'i"';:::'f;
Compound
3 INDRA DEVI Interest 10 :4989566.24
(Monthly ) '06/09/2024 25/06/2026 :4989566.24 g„'::£“:::X'';

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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors.

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.

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Parties are directed to appear before ASHISH KUMAR , Recovery Oflicer, DEBTS RECOVERY TRIBUNAL PATNA on 05/08/2026.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 02/07/2026

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PRESIDIMOFFICER DEBTS RECOVERY TRIBUNAL PATNA

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CA’I,
_ Rigistrar
D e::I !Ii[:IF W=: n a

¶101

Presidin: OIFicd1 8ebtB Recovery Tab IIne PATHA

¶102

FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor9 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 198/2026

Case No: OA/451/2024

Applicant(s): CANARA BANK

¶111

Versus

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Defendant(s): M/S JAI BALAJEE TRADING AND CO

¶113

	ItemofCosts	lount inRs
	’eeontheapplication	F52000
	hiiii F8es(Inc.Publication)
3.	i AdvocateFees	0
i4.	}Commissioner/Receiver/Valuation/SecurityFee	0
5.	!MiscellaneousCharges	io
	[TotalCosts:Rs.	152000

Place: PATNA

PRESIDINtfOFFICER

Date: 02/07/2026

Note: Strike out whichever is not applicable

Canara Bank v. M/s Jai Balajee Trading and Co.

Case brief

What is this about?

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Canara Bank v. M/s Jai Balajee Trading and Co.

Case brief

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